THE TIMES 100 : The Best Performing Companies in California : THE BOTTOM LINE : Returns on the Top 100 Are Lower Than in 1990 : Profitability: A nasty recession took its toll on California's best-performing public companies.

By PATRICK LEE

April 28, 1992 12 AM PT

TIMES STAFF WRITER

As a group, California’s most profitable companies during 1991 had something in common with everybody else: an off year.

The Times 100 list of California firms that return the best value to shareholders shows some healthy returns indeed. But reflecting hard times, the newest results pale next to the returns shown on the previous year’s list.

The list ranks companies by two years’ average return on equity. This year’s winnner, Syntex Corp., clocked in at an admirable 46%. But last year’s winner, Adobe Systems Inc., registered 56.7%.

Only eight companies this year had a two-year return on equity of 30% or more, versus 17 exceeding that figure in the previous year’s list. And 19 of this year’s Times 100 companies showed returns that wouldn’t have made last year’s list at all.

Overall, the latest median two-year return on equity was 17.7%. The two-year figure in 1990 was 20.8%. The year before, it was 21.8%. The trend is clear.

Who were the winners nonetheless? The companies topping The Times 100 were a diverse lot in 1991, with several new entrants displacing previous front-runners.

Many of the new companies are in the burgeoning high-tech computer and medical industries. Others are making repeat appearances and run the gamut from toy makers to drug companies, from retailing to investment concerns.

This year’s No. 1 firm, Syntex, a Palo Alto pharmaceutical concern, “is a very well managed company, highly profitable with good margins,” said Robert Hodgson, a pharmaceutical industry analyst with Cowen & Co. in Boston.

The company had a 19% increase in annual income in 1991 as calculated by MZ Group, the San Francisco business research firm that compiles The Times 100. Syntex’s sales in 1991 were dominated by two anti-arthritis drugs, Naprosyn and Anaprox, which both saw sizable sales increases that year.

Patents for the two drugs expire in 1993. But the company is positioning itself to lessen the effects of that expiration, analysts say. The company is considering a conversion to over-the-counter formulations and supplying bulk chemicals to generic drug makers.

Several new drugs stand to supplement the anti-arthritis drugs. An oral form of Toradol, a non-narcotic pain killer that would compete with codeine, won approval in December from the Food and Drug Administration. Hodgson predicted that Toradol has the potential to generate $500,000 in sales by 1995. A second drug, Ticlid, used to treat strokes, won FDA approval last October.

To appear on The Times 100 list, companies must be based in California and have sales greater than $50 million. Their stock must have been traded publicly since December, 1990, on one of the major exchanges.

A company cannot be a real estate investment trust or a limited partnership. Further, a company’s long-term debt-to-equity ratio must be less than 4 to 1, and a firm must not have reported a negative common shareholders’ equity for either of the last two years.

The companies are ranked by two years’ average return on equity, figured by dividing income by average common shareholders’ equity. Our top ten companies appeared to resist the downward pull of the recession in 1991, with most reporting sales and income above 1990 levels.

The Top 10

1) Syntex has been in the top 10 of The Times 100 since 1988, last year at No. 3. Sales of its main anti-arthritis drugs continue to increase, and new drugs will soon come on the market. Other products include oral contraceptives.

2) Adobe Systems, Mountain View, was last year’s No. 1 and continues to draw praise for good management, marketing and products. The dominant marketer of software that drives computer printers, Adobe last year took a further step in becoming the industry standard by striking a deal with Apple Computer to incorporate Adobe’s type-font technology in the new Apple Macintosh system software. Royalties from Apple already account for about 23% of Adobe’s revenue.

3) WD-40 Co., San Diego, has been a fixture atop The Times 100 since 1988 because of its popular primary product, an all-purpose household lubricant. Despite continuing strong competition from outsiders, WD-40 is managing to hold onto its market share, analysts say. Sales and income in fiscal 1991 fell slightly, as company officials had predicted. Even so, WD-40 moved up a notch on The Times 100 list.

4) Gap Inc., San Francisco, has won rave reviews for its innovative marketing of moderately priced, stylishly casual clothing in immaculate stores. While retailers nationwide reported falling sales during the height of the recession, Gap--which operates The Gap, GapKids and Banana Republic stores--reported consistent sales and income gains. That boosted the company to No. 4 from 13 in last year’s Times 100. Gap plans further expansion in fiscal 1992, spending about $250 million to add 140 to 150 new stores, expand another 80 and make other improvements. The company is also reportedly mulling a new chain of specialty shoe stores.

5) Century Medicorp., a Los Angeles health maintenance organization, wins praise for marketing health care plans to small companies and employee groups. Analysts say the firm, which has been on an acquisition binge in recent years, has also cleaned up its balance sheet. High debt kept the company off The Times 100 until now. In 1990, the company had a debt-to-equity ratio exceeding two to one, the limit for inclusion on the list at the time. For 1991, the company’s debt-to-equity ratio fell to 1.26 to 1, according to MZ Group’s calculations.

6) Franklin Resources Inc., San Mateo, one of the nation’s largest mutual fund investment companies, held its position on The Times 100 with strong growth in sales and revenue in 1991. Assets in the company’s various investment funds rose at the end of fiscal 1991 to $54.7 billion from $44.5 billion at the end of fiscal 1990. The number of fund shareholder accounts grew last year to 1.9 million from about 1.8 million, about 22% of them retirement funds. In 1991, the company repurchased more than 6.3 million of its shares on the open market.

7) National Health Laboratories Inc., La Jolla, makes its first appearance on The Times 100 and debuts at No. 7. It was previously ineligible for listing because it wasn’t offered to the public until July, 1988. One of the nation’s largest clinical testing companies, National Health is riding a wave of increased health monitoring in a graying population. Its automated system processes about 90,000 patient samples daily, analysts say. The company is about 40% owned by investor Ronald O. Perelman’s firm, MacAndrews & Forbes Holdings Inc. through its Revlon Group.

8) Toy giant Mattel Inc. of El Segundo falls three slots in The Times 100, but saw continuing sales and income growth in the wake of a successful restructuring. The company remains heavily dependent on core toys, especially its ever-popular Barbie doll. But this year, Mattel launches an aggressive expansion of its toy lines and will increase links with television by marketing a Nickelodeon brand in connection with the children’s cable TV service.

9) Personal computer maker AST Research Inc. of Irvine also marks a first appearance on The Times 100. The company reported a loss in 1989 and was ineligible for listing until this year. The company has made a mark in a highly competitive hardware segment with low-cost IBM clones. Some analysts praise the company’s marketing. Others say AST will need to improve its offerings to remain competitive.

10) International Rectifier Corp., an El Segundo supplier of power semiconductors, also debuts on The Times 100, because of a loss in 1989 that rendered it ineligible until this year. The company makes and markets semiconductors used to control electricity at relatively high voltage or current levels in industrial and other equipment. Both sales and income rose strongly in 1991.

The Times 100

Companies ranked by income as a percentage of average common equity over two years. Rank: 1 ’90 rank: 3 Company: Syntex Corp. * Industry: Drugs City: Palo Alto 2-year Average Return on Equity: 46.0 1991 Sales ($ millions): 1,870.7 1991 Income ($ millions): 430.9 % Change in Income From 1990: 19 Rank: 2 ’90 rank: 1 Company: Adobe Systems Inc. Industry: Computer Software City: Mountain View 2-year Average Return on Equity: 41.8 1991 Sales ($ millions): 229.7 1991 Income ($ millions): 51.6 % Change in Income From 1990: 29 Rank: 3 ’90 rank: 4 Company: WD-40 Co. * Industry: Consumer Products City: San Diego 2-year Average Return on Equity: 40.4 1991 Sales ($ millions): 92.9 1991 Income ($ millions): 16.5 % Change in Income From 1990: 15 Rank: 4 ’90 rank: 13 Company: Gap Inc. Industry: Clothing Stores City: San Francisco 2-year Average Return on Equity: 38.1 1991 Sales ($ millions): 2,518.9 1991 Income ($ millions): 229.9 % Change in Income From 1990: 59 Rank: 5 ’90 rank: Company: Century Medicorp Industry: Hospital & Medical Insurance City: Los Angeles 2-year Average Return on Equity: 32.1 1991 Sales ($ millions): 137.5 1991 Income ($ millions): 4.9 % Change in Income From 1990: 217 Rank: 6 ’90 rank: 6 Company: Franklin Resources Inc. * Industry: Investment Services City: San Mateo 2-year Average Return on Equity: 32.0 1991 Sales ($ millions): 333.9 1991 Income ($ millions): 104.0 % Change in Income From 1990: 15 Rank: 7 ’90 rank: Company: National Health Laboratories Industry: Medical Laboratories City: La Jolla 2-year Average Return on Equity: 31.8 1991 Sales ($ millions): 603.9 1991 Income ($ millions): 103.9 % Change in Income From 1990: 26 Rank: 8 ’90 rank: 5 Company: Mattel Inc. Industry: Games & Toys City: El Segundo 2-year Average Return on Equity: 31.0 1991 Sales ($ millions): 1,621.7 1991 Income ($ millions): 118.1 % Change in Income From 1990: 29 Rank: 9 ’90 rank: Company: AST Research Inc. * Industry: Computer Products City: Irvine 2-year Average Return on Equity: 30.2 1991 Sales ($ millions): 827.3 1991 Income ($ millions): 70.2 % Change in Income From 1990: 34 Rank: 10 ’90 rank: Company: International Rectifier Corp. * Industry: Semiconductor Manufacturing City: El Segundo 2-year Average Return on Equity: 29.2 1991 Sales ($ millions): 254.9 1991 Income ($ millions): 15.3 % Change in Income From 1990: 45 Rank: 11 ’90 rank: Company: Symantec Corp. * Industry: Computer Software City: Cupertino 2-year Average Return on Equity: 29.0 1991 Sales ($ millions): 175.9 1991 Income ($ millions): 18.0 % Change in Income From 1990: 271 Rank: 12 ’90 rank: 22 Company: Pacificare Health Systems * Industry: Hospitals & HMOs City: Cypress 2-year Average Return on Equity: 28.9 1991 Sales ($ millions): 1,312.9 1991 Income ($ millions): 29.8 % Change in Income From 1990: 73 Rank: 13 ’90 rank: 16 Company: Autodesk Inc. Industry: Computer Software City: Sausalito 2-year Average Return on Equity: 26.9 1991 Sales ($ millions): 284.9 1991 Income ($ millions): 57.8 % Change in Income From 1990: 2 Rank: 14 ’90 rank: 8 Company: Quiksilver Inc. Industry: Mens’ and Boys’ Apparel City: Costa Mesa 2-year Average Return on Equity: 26.9 1991 Sales ($ millions): 97.1 1991 Income ($ millions): 6.4 % Change in Income From 1990: (32) Rank: 15 ’90 rank: 10 Company: Novellus Systems Inc. Industry: Special Industrial Machinery City: San Jose 2-year Average Return on Equity: 26.9 1991 Sales ($ millions): 80.0 1991 Income ($ millions): 16.8 % Change in Income From 1990: 20 Rank: 16 ’90 rank: 28 Company: SynOptics Communications Inc. * Industry: Computer Equipment City: Santa Clara 2-year Average Return on Equity: 26.8 1991 Sales ($ millions): 248.3 1991 Income ($ millions): 26.8 % Change in Income From 1990: (5) Rank: 17 ’90 rank: Company: Charles Schwab Corp. Industry: Investment Services City: San Francisco 2-year Average Return on Equity: 26.3 1991 Sales ($ millions): 795.2 1991 Income ($ millions): 49.5 % Change in Income From 1990: 195 Rank: 18 ’90 rank: 20 Company: Acuson Corp. Industry: Medical Imaging Products City: Mountain View 2-year Average Return on Equity: 26.3 1991 Sales ($ millions): 336.3 1991 Income ($ millions): 58.5 % Change in Income From 1990: 22 Rank: 19 ’90 rank: 39 Company: Mercury General Corp. Industry: Property-Casualty Insurance City: Los Angeles 2-year Average Return on Equity: 26.2 1991 Sales ($ millions): 527.2 1991 Income ($ millions): 65.5 % Change in Income From 1990: 27 Rank: 20 ’90 rank: 32 Company: Centex Telemanagement Inc. Industry: Management Consulting City: San Francisco 2-year Average Return on Equity: 26.1 1991 Sales ($ millions): 146.6 1991 Income ($ millions): 11.3 % Change in Income From 1990: 17 Rank: 21 ’90 rank: 12 Company: Apple Computer Inc. * Industry: Computer Products City: Cupertino 2-year Average Return on Equity: 25.7 1991 Sales ($ millions): 6,496.0 1991 Income ($ millions): 325.4 % Change in Income From 1990: (35) Rank: 22 ’90 rank: 17 Company: 20th Century Industries Industry: Property-Casualty Insurance City: Woodland Hills 2-year Average Return on Equity: 25.3 1991 Sales ($ millions): 906.8 1991 Income ($ millions): 103.5 % Change in Income From 1990: 5 Rank: 23 ’90 rank: 23 Company: Bridgford Foods Corp. * Industry: Food Products City: Anaheim 2-year Average Return on Equity: 25.1 1991 Sales ($ millions): 94.5 1991 Income ($ millions): 4.6 % Change in Income From 1990: 14 Rank: 24 ’90 rank: 29 Company: Altera Corp. Industry: Semiconductor Manufacturing City: San Jose 2-year Average Return on Equity: 24.9 1991 Sales ($ millions): 106.9 1991 Income ($ millions): 17.8 % Change in Income From 1990: 33 Rank: 25 ’90 rank: 80 Company: SPI Pharmaceuticals Inc. Industry: Drugs City: Costa Mesa 2-year Average Return on Equity: 24.8 1991 Sales ($ millions): 364.4 1991 Income ($ millions): 30.1 % Change in Income From 1990: 102 Rank: 26 ’90 rank: Company: MagneTek Inc. * Industry: Motors & Generators City: Los Angeles 2-year Average Return on Equity: 24.6 1991 Sales ($ millions): 1,171.1 1991 Income ($ millions): 34.4 % Change in Income From 1990: (4) Rank: 27 ’90 rank: 45 Company: Maxim Integrated Products * Industry: Semiconductor Manufacturing City: Sunnyvale 2-year Average Return on Equity: 23.4 1991 Sales ($ millions): 80.0 1991 Income ($ millions): 11.9 % Change in Income From 1990: 35 Rank: 28 ’90 rank: 18 Company: Conner Peripherals Industry: Computer Storage Devices City: San Jose 2-year Average Return on Equity: 23.2 1991 Sales ($ millions): 1,599.0 1991 Income ($ millions): 92.5 % Change in Income From 1990: (29) Rank: 29 ’90 rank: 42 Company: McGrath Rent Corp. Industry: Equipment Rental & Leasing City: San Lorenzo 2-year Average Return on Equity: 23.1 1991 Sales ($ millions): 55.8 1991 Income ($ millions): 11.0 % Change in Income From 1990: 16 Rank: 30 ’90 rank: 30 Company: CVB Financial Corp. Industry: Banking City: Ontario 2-year Average Return on Equity: 22.1 1991 Sales ($ millions): 55.9 1991 Income ($ millions): 8.0 % Change in Income From 1990: (10) Rank: 31 ’90 rank: 73 Company: Linear Technology Corp. * Industry: Semiconductor Manufacturing City: Milpitas 2-year Average Return on Equity: 21.6 1991 Sales ($ millions): 107.0 1991 Income ($ millions): 20.7 % Change in Income From 1990: 49 Rank: 32 ’90 rank: 55 Company: Frederick’s of Hollywood * Industry: Clothing Stores City: Los Angeles 2-year Average Return on Equity: 21.2 1991 Sales ($ millions): 114.2 1991 Income ($ millions): 5.1 % Change in Income From 1990: 15 Rank: 33 ’90 rank: 50 Company: Jacobs Engineering Group * Industry: Construction City: Pasadena 2-year Average Return on Equity: 21.1 1991 Sales ($ millions): 1,025.8 1991 Income ($ millions): 21.4 % Change in Income From 1990: 36 Rank: 34 ’90 rank: 31 Company: Walt Disney Co. * Industry: Film & Theme Parks City: Burbank 2-year Average Return on Equity: 21.1 1991 Sales ($ millions): 6,626.6 1991 Income ($ millions): 673.7 % Change in Income From 1990: (18) Rank: 35 ’90 rank: 41 Company: Diagnostic Products Corp. Industry: Medical Diagnostic Products City: Los Angeles 2-year Average Return on Equity: 20.9 1991 Sales ($ millions): 90.1 1991 Income ($ millions): 19.3 % Change in Income From 1990: 12 Rank: 36 ’90 rank: 62 Company: Intel Corp. Industry: Semiconductor Manufacturing City: Santa Clara 2-year Average Return on Equity: 20.8 1991 Sales ($ millions): 4,778.6 1991 Income ($ millions): 818.6 % Change in Income From 1990: 26 Rank: 37 ’90 rank: 34 Company: Ross Stores Inc. * Industry: Department Stores City: Newark 2-year Average Return on Equity: 20.4 1991 Sales ($ millions): 896.9 1991 Income ($ millions): 23.9 % Change in Income From 1990: 9 Rank: 38 ’90 rank: Company: Solectron Corp. * Industry: Printed Circuit Boards City: Milpitas 2-year Average Return on Equity: 20.3 1991 Sales ($ millions): 317.3 1991 Income ($ millions): 11.2 % Change in Income From 1990: 44 Rank: 39 ’90 rank: 2 Company: United Television Inc. Industry: Radio & TV Broadcasting City: Beverly Hills 2-year Average Return on Equity: 20.2 1991 Sales ($ millions): 112.9 1991 Income ($ millions): 5.2 % Change in Income From 1990: (89) Rank: 40 ’90 rank: Company: Northrop Corp. Industry: Aircraft City: Los Angeles 2-year Average Return on Equity: 20.1 1991 Sales ($ millions): 5,694.2 1991 Income ($ millions): 200.8 % Change in Income From 1990: (5) Rank: 41 ’90 rank: 56 Company: Anthem Electronics Inc. Industry: Wholesale Electronics City: San Jose 2-year Average Return on Equity: 19.5 1991 Sales ($ millions): 419.6 1991 Income ($ millions): 23.3 % Change in Income From 1990: 0 Rank: 42 ’90 rank: Company: Vons Cos. Industry: Grocery Stores City: Arcadia 2-year Average Return on Equity: 19.4 1991 Sales ($ millions): 5,350.2 1991 Income ($ millions): 65.0 % Change in Income From 1990: 31 Rank: 43 ’90 rank: 44 Company: Price Co. * Industry: Variety Stores City: San Diego 2-year Average Return on Equity: 19.4 1991 Sales ($ millions): 7,056.2 1991 Income ($ millions): 137.4 % Change in Income From 1990: 7 Rank: 44 ’90 rank: 19 Company: Neutrogena Corp. * Industry: Soaps & Cosmetics City: Los Angeles 2-year Average Return on Equity: 19.2 1991 Sales ($ millions): 238.9 1991 Income ($ millions): 22.1 % Change in Income From 1990: 60 Rank: 45 ’90 rank: Company: Network General Corp. * Industry: Computer Peripheral Equipment City: Menlo Park 2-year Average Return on Equity: 18.8 1991 Sales ($ millions): 56.8 1991 Income ($ millions): 7.7 % Change in Income From 1990: 8 Rank: 46 ’90 rank: 27 Company: FHP International Corp. * Industry: Medical Offices & Clinics City: Fountain Valley 2-year Average Return on Equity: 18.7 1991 Sales ($ millions): 1,430.1 1991 Income ($ millions): 33.3 % Change in Income From 1990: 3 Rank: 47 ’90 rank: 57 Company: National Medical Enterprises Industry: General Medical & Hospitals City: Santa Monica 2-year Average Return on Equity: 18.7 1991 Sales ($ millions): 3,972.7 1991 Income ($ millions): 292.3 % Change in Income From 1990: 13 Rank: 48 ’90 rank: 72 Company: International Technology Corp. * Industry: Environmental Services City: Torrance 2-year Average Return on Equity: 18.6 1991 Sales ($ millions): 460.4 1991 Income ($ millions): 21.9 % Change in Income From 1990: 34 Rank: 49 ’90 rank: Company: Kasler Corp. Industry: Construction City: Highland 2-year Average Return on Equity: 18.5 1991 Sales ($ millions): 195.2 1991 Income ($ millions): 5.7 % Change in Income From 1990: 83 Rank: 50 ’90 rank: 70 Company: Good Guys Inc. * Industry: Radio, TV and Music Stores City: San Francisco 2-year Average Return on Equity: 18.2 1991 Sales ($ millions): 457.2 1991 Income ($ millions): 10.6 % Change in Income From 1990: 22 Rank: 51 ’90 rank: 91 Company: Sunrise Medical Inc. * Industry: Surgical Supplies City: Torrance 2-year Average Return on Equity: 17.7 1991 Sales ($ millions): 212.9 1991 Income ($ millions): 9.2 % Change in Income From 1990: 38 Rank: 52 ’90 rank: 47 Company: Argonaut Group Inc. Industry: Property-Casualty Insurance City: Los Angeles 2-year Average Return on Equity: 17.7 1991 Sales ($ millions): 517.3 1991 Income ($ millions): 84.4 % Change in Income From 1990: (6) Rank: 53 ’90 rank: 49 Company: UniCare Financial Corp. Industry: Property-Casualty Insurance City: Irvine 2-year Average Return on Equity: 17.6 1991 Sales ($ millions): 126.3 1991 Income ($ millions): 7.5 % Change in Income From 1990: (16) Rank: 54 ’90 rank: 69 Company: Fidelity National Financial Inc. Industry: Title Insurance City: Irvine 2-year Average Return on Equity: 17.4 1991 Sales ($ millions): 220.6 1991 Income ($ millions): 6.2 % Change in Income From 1990: 36 Rank: 55 ’90 rank: 26 Company: Atlantic Richfield Co. Industry: Oil & Gas City: Los Angeles 2-year Average Return on Equity: 17.3 1991 Sales ($ millions): 17,037.0 1991 Income ($ millions): 709.0 % Change in Income From 1990: (58) Rank: 56 ’90 rank: Company: Guardian Bancorp Industry: Banking City: Los Angeles 2-year Average Return on Equity: 17.3 1991 Sales ($ millions): 51.1 1991 Income ($ millions): 3.7 % Change in Income From 1990: (48) Rank: 57 ’90 rank: Company: FirstFed Financial Corp. Industry: Savings & Loans City: Santa Monica 2-year Average Return on Equity: 17.2 1991 Sales ($ millions): 304.9 1991 Income ($ millions): 28.4 % Change in Income From 1990: 5 Rank: 58 ’90 rank: Company: Amwest Insurance Group Inc. Industry: Surety Insurance City: Woodland Hills 2-year Average Return on Equity: 17.2 1991 Sales ($ millions): 55.8 1991 Income ($ millions): 3.5 % Change in Income From 1990: (32) Rank: 59 ’90 rank: 63 Company: Superior Industries International Industry: Motor Vehicle Parts City: Van Nuys 2-year Average Return on Equity: 17.1 1991 Sales ($ millions): 273.5 1991 Income ($ millions): 18.2 % Change in Income From 1990: 48 Rank: 60 ’90 rank: Company: Carl Karcher Enterprises Inc. Industry: Food Service City: Anaheim 2-year Average Return on Equity: 17.0 1991 Sales ($ millions): 531.6 1991 Income ($ millions): 13.0 % Change in Income From 1990: 0 Rank: 61 ’90 rank: Company: Golden West Financial Corp. Industry: Savings & Loans City: Oakland 2-year Average Return on Equity: 16.9 1991 Sales ($ millions): 2,241.5 1991 Income ($ millions): 238.6 % Change in Income From 1990: 31 Rank: 62 ’90 rank: 78 Company: Magma Power Co. Industry: Geothermal Energy City: San Diego 2-year Average Return on Equity: 16.9 1991 Sales ($ millions): 84.1 1991 Income ($ millions): 33.9 % Change in Income From 1990: 13 Rank: 63 ’90 rank: 82 Company: Dionex Corp. * Industry: Measuring Instruments City: Sunnyvale 2-year Average Return on Equity: 16.8 1991 Sales ($ millions): 91.8 1991 Income ($ millions): 14.4 % Change in Income From 1990: 13 Rank: 64 ’90 rank: 75 Company: Sumitomo Industry: Banking City: San Francisco. 2-year Average Return on Equity: 16.7 1991 Sales ($ millions): 516.6 1991 Income ($ millions): 42.9 % Change in Income From 1990: (5) Rank: 65 ’90 rank: 77 Company: Fluor Corp. Industry: Construction City: Irvine 2-year Average Return on Equity: 16.7 1991 Sales ($ millions): 6,741.7 1991 Income ($ millions): 149.1 % Change in Income From 1990: 7 Rank: 66 ’90 rank: 48 Company: Dreyer’s Grand Ice Cream Inc. Industry: Dairy Products City: Oakland 2-year Average Return on Equity: 16.5 1991 Sales ($ millions): 354.9 1991 Income ($ millions): 15.9 % Change in Income From 1990: 34 Rank: 67 ’90 rank: 67 Company: Longs Drug Stores Inc. * Industry: Drug Stores City: Walnut Creek 2-year Average Return on Equity: 16.5 1991 Sales ($ millions): 2,398.3 1991 Income ($ millions): 57.0 % Change in Income From 1990: (7) Rank: 68 ’90 rank: Company: Berry Petroleum Industry: Oil & Gas Production City: Taft 2-year Average Return on Equity: 16.3 1991 Sales ($ millions): 77.4 1991 Income ($ millions): 16.6 % Change in Income From 1990: (6) Rank: 69 ’90 rank: 85 Company: BankAmerica Corp. Industry: Banking City: San Francisco 2-year Average Return on Equity: 16.3 1991 Sales ($ millions): 12,133.0 1991 Income ($ millions): 1,124.0 % Change in Income From 1990: 28 Rank: 70 ’90 rank: Company: Southern California Water Co. Industry: Water Supply Services City: San Dimas 2-year Average Return on Equity: 16.2 1991 Sales ($ millions): 90.7 1991 Income ($ millions): 15.4 % Change in Income From 1990: 72 Rank: 71 ’90 rank: Company: Tekelec Industry: Radio-TV Communications Equip. City: Calabasas 2-year Average Return on Equity: 16.1 1991 Sales ($ millions): 52.4 1991 Income ($ millions): 4.6 % Change in Income From 1990: (9) Rank: 72 ’90 rank: 51 Company: Adaptec Inc. * Industry: Semiconductor Manufacturing City: Milpitas 2-year Average Return on Equity: 15.8 1991 Sales ($ millions): 133.1 1991 Income ($ millions): 10.3 % Change in Income From 1990: (30) Rank: 73 ’90 rank: Company: Silicon Graphics Inc. * Industry: Computer Products City: Mountain View 2-year Average Return on Equity: 15.8 1991 Sales ($ millions): 637.9 1991 Income ($ millions): 36.6 % Change in Income From 1990: (8) Rank: 74 ’90 rank: Company: Sun Microsystems Inc. * Industry: Computer Products City: Mountain View 2-year Average Return on Equity: 15.7 1991 Sales ($ millions): 3,454.7 1991 Income ($ millions): 199.3 % Change in Income From 1990: 32 Rank: 75 ’90 rank: Company: Fremont General Corp. Industry: Insurance City: Santa Monica 2-year Average Return on Equity: 15.5 1991 Sales ($ millions): 581.2 1991 Income ($ millions): 32.1 % Change in Income From 1990: 23 Rank: 76 ’90 rank: 93 Company: McKesson Corp. Industry: Whsl-Drugs & Medical Products City: San Francisco 2-year Average Return on Equity: 15.5 1991 Sales ($ millions): 9,710.7 1991 Income ($ millions): 97.6 % Change in Income From 1990: 1 Rank: 77 ’90 rank: Company: Amplicon Inc. * Industry: Computer Rental & Leasing City: Santa Ana 2-year Average Return on Equity: 15.4 1991 Sales ($ millions): 137.5 1991 Income ($ millions): 8.2 % Change in Income From 1990: 23 Rank: 78 ’90 rank: Company: Nellcor Inc. * Industry: Medical Instruments City: Hayward 2-year Average Return on Equity: 15.4 1991 Sales ($ millions): 173.2 1991 Income ($ millions): 18.9 % Change in Income From 1990: 32 Rank: 79 ’90 rank: 66 Company: Harding Associates Inc. * Industry: Environmental Engineering City: Novato 2-year Average Return on Equity: 15.4 1991 Sales ($ millions): 75.7 1991 Income ($ millions): 4.0 % Change in Income From 1990: (20) Rank: 80 ’90 rank: Company: Countrywide Credit * Industry: Mortgage Banking & Brokerage City: Pasadena 2-year Average Return on Equity: 15.3 1991 Sales ($ millions): 278.5 1991 Income ($ millions): 45.0 % Change in Income From 1990: 137 Rank: 81 ’90 rank: Company: San Diego Gas & Electric Industry: Utility City: San Diego 2-year Average Return on Equity: 15.1 1991 Sales ($ millions): 1,789.0 1991 Income ($ millions): 208.1 % Change in Income From 1990: 0 Rank: 82 ’90 rank: Company: Kaufman & Broad Home Corp. Industry: General Contractors City: Los Angeles 2-year Average Return on Equity: 14.9 1991 Sales ($ millions): 1,221.0 1991 Income ($ millions): 26.5 % Change in Income From 1990: (34) Rank: 83 ’90 rank: 37 Company: Williams-Sonoma Inc. * Industry: Furniture & Furnishings City: San Francisco 2-year Average Return on Equity: 14.8 1991 Sales ($ millions): 305.3 1991 Income ($ millions): 6.6 % Change in Income From 1990: (34) Rank: 84 ’90 rank: Company: Logicon Inc. * Industry: Computer Programming Service City: Torrance 2-year Average Return on Equity: 14.6 1991 Sales ($ millions): 286.3 1991 Income ($ millions): 12.3 % Change in Income From 1990: 44 Rank: 85 ’90 rank: 61 Company: Community Psychiatric Centers Industry: Hospitals City: Laguna Hills 2-year Average Return on Equity: 14.6 1991 Sales ($ millions): 396.6 1991 Income ($ millions): 45.3 % Change in Income From 1990: (46) Rank: 86 ’90 rank: 53 Company: Mentor Corp. * Industry: Medical Instruments City: Santa Barbara 2-year Average Return on Equity: 14.6 1991 Sales ($ millions): 87.0 1991 Income ($ millions): 5.3 % Change in Income From 1990: (25) Rank: 87 ’90 rank: 74 Company: Rockwell International Corp. * Industry: Conglomerate City: Seal Beach 2-year Average Return on Equity: 14.5 1991 Sales ($ millions): 11,549.4 1991 Income ($ millions): 582.3 % Change in Income From 1990: (6) Rank: 88 ’90 rank: 90 Company: Bergen Brunswig Corp. * Industry: Whsl-Drugs & Medical Products City: Orange 2-year Average Return on Equity: 14.4 1991 Sales ($ millions): 4,960.5 1991 Income ($ millions): 56.1 % Change in Income From 1990: (18) Rank: 89 ’90 rank: Company: First Republic Bancorp Inc. Industry: Savings & Loans City: San Francisco 2-year Average Return on Equity: 14.2 1991 Sales ($ millions): 86.1 1991 Income ($ millions): 7.5 % Change in Income From 1990: 97 Rank: 90 ’90 rank: 87 Company: P. Leiner Nutritional Products * Industry: Vitamins & Cosmetics City: Torrance 2-year Average Return on Equity: 14.1 1991 Sales ($ millions): 135.7 1991 Income ($ millions): 4.6 % Change in Income From 1990: (25) Rank: 91 ’90 rank: Company: Westamerica Bancorp Industry: Banking City: San Rafael 2-year Average Return on Equity: 14.1 1991 Sales ($ millions): 133.5 1991 Income ($ millions): 11.6 % Change in Income From 1990: 7 Rank: 92 ’90 rank: Company: Lockheed Corp. Industry: Aerospace & Defense Products City: Calabasas 2-year Average Return on Equity: 14.1 1991 Sales ($ millions): 9,809.0 1991 Income ($ millions): 308.0 % Change in Income From 1990: (8) Rank: 93 ’90 rank: 97 Company: Harper Group Inc. Industry: Freight Transport Service City: San Francisco 2-year Average Return on Equity: 14.0 1991 Sales ($ millions): 453.9 1991 Income ($ millions): 17.1 % Change in Income From 1990: (10) Rank: 94 ’90 rank: 100 Company: Geodynamics Corp. * Industry: Engineering Services City: Santa Barbara 2-year Average Return on Equity: 14.0 1991 Sales ($ millions): 60.1 1991 Income ($ millions): 3.6 % Change in Income From 1990: (6) Rank: 95 ’90 rank: Company: Farmer Bros. Co. Industry: Food Products City: Torrance 2-year Average Return on Equity: 13.9 1991 Sales ($ millions): 197.8 1991 Income ($ millions): 21.6 % Change in Income From 1990: 1 Rank: 96 ’90 rank: 46 Company: Octel Communications Corp. * Industry: Telephone & Telecommunications City: Milpitas 2-year Average Return on Equity: 13.7 1991 Sales ($ millions): 175.1 1991 Income ($ millions): 19.5 % Change in Income From 1990: 18 Rank: 97 ’90 rank: Company: Dole Food Co. Industry: Farming City: West Lake Village 2-year Average Return on Equity: 13.6 1991 Sales ($ millions): 3,216.0 1991 Income ($ millions): 133.7 % Change in Income From 1990: 11 Rank: 98 ’90 rank: Company: SCE Corp. Industry: Electric Utility City: Rosemead 2-year Average Return on Equity: 13.6 1991 Sales ($ millions): 7,502.5 1991 Income ($ millions): 744.8 % Change in Income From 1990: (10) Rank: 99 ’90 rank: Company: BEI Electronics Inc. * Industry: Electronic Components City: San Francisco 2-year Average Return on Equity: 13.5 1991 Sales ($ millions): 149.5 1991 Income ($ millions): 6.8 % Change in Income From 1990: 24 Rank: 100 ’90 rank: Company: Cypress Semiconductor Corp. Industry: Semiconductor Manufacturing City: San Jose 2-year Average Return on Equity: 13.5 1991 Sales ($ millions): 286.8 1991 Income ($ millions): 34.2 % Change in Income From 1990: 3 * See exceptions, Page 54.

Source: MZ Group. Certain historical data is from Standard & Poor’s Compustat Inc.